Good news for investors, but hardship could be on the cards for mortage-holders as interest rates creep closer to a record high.

According to market intelligence gathered by research firm Servimedia, the Euribor – which acts as the base for mortgage interest rates in most EU member states, including Spain – has shot to 4.656 per cent.

This is just short of its historic high between May and December 2000, when the rate fluctuated between 4.849 and 5.248 per cent.

The latter figure was reached in August 2000 and remained above 5.1 per cent until November of that year, the highest rates seen since the Euribor was created in January 1999.
The lowest-ever was June 2003’s 2.014 per cent.

Experts say this month’s increase is the 23rd consecutive rise and the current Euribor rate has only ever been exceeded eight times.